Interim Management Statement

PayPoint plc
Interim Management Statement


The board is pleased  to report on  events, transactions and  trading
since the half yearly financial report.

In the UK, bill and general payment volumes continue to run ahead  of
plan. As  previously  reported,  the beneficial  impact  of  this  is
mitigated by lower mobile  top-ups volumes in the  UK and Ireland  as
mobile networks offer more competitive pre-pay tariffs.

In Romania, we have launched the second phase of bill payment clients
and now have nine bill payment clients live and transacting.

On 9 January, we  purchased the freehold of  our operational base  in
Welwyn Garden City for £6m funded from existing bank resources.   The
annual rental thereby eliminated  represents in excess  of 9% of  the
purchase price.

Today, we have formed a joint  venture between PayPoint plc and  Home
Delivery Network  Limited (HDNL),  the  UK's largest  dedicated  home
delivery and collection service, to provide a nationwide network  for
consumers  to  collect  and  return  parcels  at  selected   PayPoint
convenience stores.

The UK market volume for  business to consumer parcel deliveries  and
returns is  in  excess of  400  million annually.   Sending  parcels,
collecting parcels following  failed delivery to  home addresses  and
the vast majority of returns require consumers to visit Post  Offices
or courier depots which have restricted  opening hours and can be  in
distant locations.   PayPoint's  unrivalled  convenience  network  in
close proximity  to consumers'  homes and  with long  opening  hours,
combined with HDNL's leading  logistics and parcels delivery  network
will deliver a highly attractive new consumer service, to be launched
later this calendar year.

PayPoint expects to  spend £3million  to £4million in  the first  two
years to  develop this  venture.   We expect  that this  will  dilute
PayPoint's earnings  next  financial year  by  3p to  4p  per  share,
reducing in the following year but should be profitable thereafter.


Performance (1) for the period from 29 September 2008 to 29  December
2008 (2) and financial position (1) as at 29 December 2008


Terminal sites have increased  by 1,159 since  the 28 September  2008
from 25,515 (including 4,743 in  Romania) to 26,674 (including  5,467
in Romania). Transactions processed for the period were 148  million,
up 12%  compared  to 132  million  for  the same  period  last  year.
 Revenues for the period were £58m, up 12%.

Earnings are in line with market expectations.

After the payment of the interim  dividend of £4 million, but  before
the purchase of the freehold at Welwyn for £6 million, net cash at 29
December was  £39  million (including  client  cash of  £13  million)
compared to £28 million (including client  cash of £8 million) at  28
September 2008.

Other than as disclosed in this release, there have been no  material
events or changes in the  financial position between 29 December  and
the current date.




Enquiries
Finsbury                                  [phone]
Rollo Head/Don Hunter


(1) PayPoint's auditors have not been requested to review the
performance or financial position
(2) Comparative data is given for the similar 13 week period last
year (1 October to 30 December)

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